Obtained a $14.5 million settlement against Landry’s CEO and Board in take-private litigation
Plaintiff(s):
G&E represented Louisiana Municipal Police Employees’ Retirement System, on behalf of Landry’s shareholders
Case type / claims:
Shareholder class action challenging two separate take-private attempts by CEO and controlling shareholder Tilman J. Fertitta. Plaintiffs alleged that Fertitta sought to gain control of Landry’s by lowering his offer price and acquiring shares on the open market, while the Board failed to protect minority shareholders and aided the misconduct.
Defendant(s):
Tilman J. Fertitta and Landry’s Board of Directors
Jurisdiction:
Delaware Chancery Court
Year:
2010
Outcome:
- Grant & Eisenhofer obtained a $14.5 million settlement against defendants, plus a revised going-private transaction guaranteeing at least $24 per share — a 62% increase over the original $14.75 offer.
- Introduced a 45-day “go-shop” process with reimbursement of due diligence expenses for competing bidders.
- Case reinforced the duty of directors to safeguard shareholder value in insider-led buyouts and set a model for enhanced go-shop provisions.
